Living Needs BenefitSM1 (Accelerated Death Benefit)
The Living Needs BenefitSM (Accelerated Death Benefit) is available under this Policy at no additional premium to the policyowner. Under the benefit, the policyowner may receive a portion of the death benefit prior to the insured's death if the insured:
- has been confined to a nursing home for at least six consecutive months, and is expected to be permanently confined, (This option is not available in California, Connecticut, DC, Florida, Massachusetts, or New York) or
- is terminally ill, and has a life expectancy of six months (12 months in California) or less, or
- requires an organ transplant, and would have only six months or less to live without the transplant procedure (only available in New York).
Living Needs BenefitSM (Accelerated Death Benefit) amounts are calculated based on the actual policy death benefit and the Living Needs BenefitSM (Accelerated Death Benefit) assumptions in effect when a claim is made. New policies must meet certain face amount requirements before the Living Needs BenefitSM (Accelerated Death Benefit) may be added to the contract. Benefits are subject to the terms and conditions of the rider. State variations apply. The rider may not be available in all states.
When a claim is paid under this benefit, the death benefit is reduced for early payment, and a $150 (up to $100 in Florida) processing fee is deducted. If more than one policy is used for the claim, each policy will have a processing fee of up to $150 (up to $100 in Florida).
We reserve the right to set a minimum on the amount of the death benefit you may exercise under this rider.
The Living Needs BenefitSM (Accelerated Death Benefit) is not health, nursing home or long-term care insurance and is not designed to eliminate the need for insurance of these types.
Portions of the Living Needs BenefitSM (Accelerated Death Benefit) payment may be taxable, and receipt of the accelerated death benefit may affect eligibility for public assistance programs. The federal income tax treatment of payment made under this rider may depend upon whether the insured is considered "terminally ill" or "chronically ill" and, if the policy is business related, whether the insured is receiving the benefits. We suggest that you seek assistance from a personal tax advisor regarding the implications of receiving Living Needs BenefitSM (Accelerated Death Benefit) payments.
The generic form number is ORD 87241 with date and state variations.
This rider is not available in Minnesota to new purchases over age 65 until the policy has been in force for one year. This rider is not available in Washington state.